LindaB

If you really want to help this client, convince them to change brokers. The broker is churning the investments and taking the money.

Enter the sale the way you think it should be, then go to the tax worksheet and follow it through carefully so you know that you're getting the correct result. With the Sch. D open click on 'Pages & Worksheets' and select 'Tax Worksheet (Sch D (1040), 8949).

There is a place in the drop down list for line 21 of the 1040 to put this (assuming you've determined that it's taxable).

Thanks, Catherine. The more I think about it the more I think the brother made a mistake--Turbo Tax asked him where he lived and he said IL.

I have a client whose mother passed away last year. The mother lived in MI, and the client lives in MI. Clients brother is the trustee, and he lives in IL. The brother gave my client a federal K-1 (form 1041) and also an IL K-1, and filed an IL-1041. According to the IL K-1 the 'pass-through entity made tax payment on behalf of the nonresident beneficiary'. Is this right? I don't do estate returns, but it doesn't seem right to me that an estate in MI, all property in MI, would have to file an IL estate return just because the trustee lives in IL. I asked my client to ask her brother why he filed with IL, the only useful information she came back with was that he did the estate returns himself on Turbo Tax. Would IL be looking for a non-resident tax return from my client?

Real property uses mid-month convention and personal property uses half-year convention, I think this figures into it.

I looks like it should be in part II, total amount on line 16 and the nondeductible part on line 17. Line 7 in part I says do not include conversion amounts there. Do it so it comes out correctly, you don't want them to pay tax on the nondeductible part again.

MI doesn't require registration, so yes you can efile.

Don't know if this applies to your situation, but pub. 970 also says: "If you are the person legally obligated to make interest payments and someone else makes a payment of interest on your behalf, you are treated as receiving the payments from the other person and, in turn, paying the interest.

I was just working on one of these too, I read it that if the taxpayer took out the loan and is responsible for repayment, and took out the loan when the student was his dependent, then the taxpayer can take the deduction as long as he is paying off the loan, even if the student is no longer his dependent.

I think you have to go back to the definition of a qualified distribution (from pub. 590): A qualified distribution is any payment or distribution from your Roth IRA that meets the following requirements. 1. It is made after the 5-year period beginning with the first taxable year for which a contribution was made to a Roth IRA set up for your benefit, and 2. The payment or distribution is: a. Made on or after the date you reach age 59 1/2, b. ... c. ... d. ... According to this, wouldn't any distribution he took be a qualified distribution? There is also a flow chart in pub. 590, figure 2-1, to determine if a distribution from a Roth is a qualified distribution: Start Here: "Has it been at least 5 years from the beginning of the year in which you first set up and contributed to a Roth IRA?" -> yes -> "Were you at least 59 1/2 years old at the time of the distribution?" -> yes -> "The distribution from the Roth IRA is a qualified distribution. It is not subject to tax or penalty."

Updated April 16, 1:30 PM EST Below is a schedule of acknowledgment events you will see over the next 24 hours, as posted earlier today, plus a progress update of each event. Note: check print files and InterviewPLUS files go through a different outbound process and therefore are posting to mailboxes timely. * Complete posting the acknowledgement files for returns sent in the 4/13 drains. We have approximately 2500 to post -- Posting Complete and available for download. We will start the process of running internal reports to see if any acknowledgement that we received failed to post once we get through the backlog of items in the third bullet * Complete posting the acknowledgement files for returns sent to the IRS in the 4/14 11 AM drains. We have approximately 2500 to post -- -- Posting Complete and available for download. We will start the process of running internal reports to see if any acknowledgement that we received failed to post once we get through the backlog of items in the third bullet * Complete posting the acknowledgement files for returns sent to the IRS after the 4/14 11 AM drains. We have approximately 750,000 acks. -- Status as of 12:45 PM EST shown below: • 14,020 acks left to split from returns sent to the IRS prior to last night’s 2 AM drain. This is the step that updates return query and kicks of bank applications to the banks • 711,171 at the send CCH queue (formats the flat acks we receive from the IRS to the SFS ack we deliver to you) • 93,114 currently in the post item to mailbox queue that inserts the ack into your electronic mailbox Update April 16, 10:30 AM EST We have now changed the scale of concentration from sending to the IRS to posting items to your electronic mailboxes. We are expecting to receive approximately 600,000 IRS e-file and extension acknowledgements this morning. * Due date for resending rejected returns: April 20th * Due date for resending extensions due to things such as name control mismatches: April 20th As we receive the acknowledgement files from the IRS, our first steps are to process and split them. This allows us to send any necessary files to the banks and also allows the status to be updated on Return Query. We are then stopping them at the "outbound postmaster". Prior to today this was allowing us to concentrate our efforts on sending to the IRS. Today this allows us to priorize the order in which we post the files. Below is a schedule of acknowledgment events you will see over the next 24 hours. * Complete posting the acknowledgement files for returns sent in the 4/13 drains. We have approximately 2500 to post * Complete posting the acknowledgement files for returns sent to the IRS in the 4/14 11 AM drains. We have approximately 2500 to post * Complete posting the acknowledgement files for returns sent to the IRS after the 4/14 11 AM drains. We have approximately 750,000 acks. We will update you throughout this process

Claimed as a dependent on her parents return, finished college in spring of 2009, working as an independent contractor--Sch. C income. If she used a car that belongs to her parents, can she use the standard mileage rate? (I don't think she can) Can she use actual expenses?

I think first you need to find out for sure what happened to the property in the divorce. Did the bank use the full amounts on the 1099-A sent to each of them? If you're going to use half of those figures on your clients tax return, you want to make sure it's right. You're on the right track for figuring the sale of the property, but you also need to find out about the canceled debt, from your numbers it's about $52K. Is the bank still trying to collect that, would they try to collect it from either of them or half from each? Or is the bank finished with it and not going to try to collect? Get all of the information first, file an extension for her if you have to.

You need to find out from the client the amount of original contributions to the Roth, and if there were any conversions, the amount and the date. You also need to know if there have been any other distributions from the Roth. There are certain ordering rules for distributions from a Roth, first origianl contributions, then conversions, then earnings. Use part III of form 8606 to determine if any is taxable.